Friday, July 6, 2018

The Way Amazon’s Enlarging U.S. brick-and-mortar footprint stacks up against other Large retailers

Amazon’s fast growing planetary footprint — including another Amazon Go store opening in Seattle that fall — has already surpassed Costco’s U.S. store count, but it has quite a ways to go to catch up to a number of the company’s other retail competitions. The technology giant is approaching 600 physical retail locations across the U.S., according to GeekWire research. That includes Whole Foods Market places, also retail stores such as Amazon Books, Amazon Go, AmazonFresh Pickup, Amazon Pop-Up stores in malls and bundle pickup storefronts. Inside the Amazon Go store in Seattle, where detectors along with a smartphone app allow cashier-less checkout. Whole Foods places make up close to 80% of Amazon stores across the U.S., underscoring the significance of the 13.7 billion Whole Foods acquisition for the company’s brick-and-mortar push. Because of this Whole Foods bargain, Amazon is breathing down the necks of classic retailers like Sears and Macy’s, both of which have closed stores this season. But, Walmart dwarfs Amazon’s footprint together with 5,295 stores throughout the country. In the medical Earth, drugstore giants CVS and Walgreens lead the way with about 9,700 along with 8,100 U.S. locations respectively. With Amazon’s increasing fascination with health care, keep an eye on the drugstore/pharmacy market as a potential expansion spot for the technology giant retail footprint. Unlike many of these companies, which have been building stores for decades, Amazon is new to the physical retail market. Amazon opened its first brick and mortar store, the Amazon Books location in Seattle’s University Village mall, even in 2015. The Amazon Books notion has risen to 18 places either receptive or on the road, according to Amazon. The Amazon Bookstore at Seattle’s University Village. Amazon Go is still a minuscule part of the company’s overall retail footprint, however, its cashier-less checkout technologies has made waves across the retail industry. The first Amazon Go location opened to the general public in January, following more than a year old internal testing, along with the second Seattle store is coming this fall, as initially recorded by GeekWire this past week.  Two sites have been identified for Amazon Go stores in Chicago and Amazon has committed to a presence in San Francisco. In 2016, reports surfaced that Amazon was likely to start 100 Pop-Up stores selling Amazon apparatus in malls and inside Whole Foods places across the U.S., and so far the company has 66 open or coming shortly, in accordance with its stores website. Amazon Fresh Pickup at Seattle’s Ballard neighborhood (GeekWire Photo / Kevin Lisota) Amazon opened its first two AmazonFresh Pickup stores, where customers can purchase groceries online and program them for pickup, at Seattle this past year. Amazon is still catching up to the competitors in bodily existence, but its art in online logistics and retail has motivated many merchants to their game in those regions. Walmart was particularly aggressive, acquiring Jet.com for $3.3 billion and Bonobos for $310 million. Walmart also created a flurry of different moves: enlarging supermarket delivery services throughout the country; buying New York-based Parcel to strengthen same-day delivery capacities; and building a network of massive Pickup Towers where customers can locate their online orders. Walmart has teamed up with firms such as Google and Postmates, and current reports indicate Walmart is talking to Microsoft about an Amazon Go-like engineering the technology giant is growing. Kroger invested in British online grocer Ocado to boost its delivery business and bought the meal-kit firm Home Chef, at a combined cost of about $450 million. Target bought same-day grocery delivery firm Shipt for about $550 million and began using a curbside pickup service called Drive Up. Amazon’s brick-and-mortar growth is a stark contrast to the major retailers closing stores and others going out of business all together. Toys R Us is the latest victim, since the company closed down its remaining physical shops last week, following liquidation and insolvency.  Given these tendencies, it wouldn’t be surprise to visit Amazon’s physical footprint surpass of its traditional brick-and-mortar competitions in the years ahead.

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